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If we assume that there is no fixed manufacturing overhead and the variable manufacturing overhead is $6 per direct labor-hour, what is the estimated finished goods inventory balance at the end of July

Respuesta :

Answer:

$247,000

Explanation:

The computation of the estimated finished goods inventory balance at the end of July is shown below:-

Unit product cost = 5 × 2.4 + 14 × 2 + 6 × 2

= 52

Now,

Ending finished goods inventory balance = Budgeted unit sales × Ending finished goods inventory percentage × Unit product cost

= 19,000 × 25% × 52

= $247,000

Therefore we have applied the above formula

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